The announcement was attended by Ithaca Mayor Svante Myrick.
The Namgyal Monastery plans to build the library on a 28-acre site.
Choesang described the institution to be created in Ithaca, the first of its kind outside Tibet, as a repository of materials from the Dalai Lamas.
The institute’s intent is to bring together scientists and practitioners of Buddhist philosophy to explore relationships between Buddhist philosophy and the science of the mind and consciousness, said Choesang.
The Dalai Lama’s library and museum will serve as a center for future generations of students, researchers and writers interested in Tibetan Budhism and its history and philosophy. The Dalai Lama is said to have been attracted by the presence of Cornell University and Ithaca College.